Due Diligence and Fundraising Processes
Due diligence is a crucial element of board management any fundraising plan. It verifies that a business or individual is who they claim they are, as well as providing important details regarding their past and relationships, and helps investors assess your company’s prospects for success prior to making the decision to invest in you.
If you’re a business seeking investment or looking to partner with a charitable organization being able to conduct thorough and transparent due diligence is essential to your success. The ability to conduct due diligence early in the process enables you to quickly identify and eliminate partners that are not good prior to investing your time and energy in forming an alliance that may not be worth it.
For instance when a donor is associated with controversial issues or has done something illegal in the past, this could be a major issue. Having the ability to conduct due diligence on potential donors earlier in the process allows you to find out prior to committing valuable resources to a relationship that isn’t in line with your organization’s values and goals.
A great due diligence process is quick, thorough and well-organized. It should be able take in large amounts of public data like news media websites, social networks, or even grey literature and deliver digestible reports, that can be easily shared across teams. It should also be able to automatically scour millions of documents and present an organized, clear image of your company that is easy to comprehend and share.